What are the steps to perform a security risk assessment?

1 Define the scope

The first step is to define the scope of the security risk assessment, which means to determine what systems, assets, processes, and data are in scope, and what are the objectives and criteria of the assessment. The scope should be aligned with the organization's business goals, legal requirements, and security policies. The scope should also be realistic and manageable, considering the available resources, time, and budget. The scope should be documented and communicated to all the stakeholders involved in the assessment.

4 Evaluate the risks

The fourth step is to evaluate the risks, which means to compare the risks with the predefined criteria and determine which ones are acceptable and which ones are unacceptable. The criteria can be based on the organization's risk appetite, tolerance, and threshold, which reflect how much risk the organization is willing to take, accept, or avoid. The criteria can also be based on the organization's legal obligations, regulatory standards, or contractual agreements, which define the minimum level of security that the organization must comply with. The risk evaluation should be objective and rational, and documented in a risk matrix.

5 Treat the risks

The fifth step is to treat the risks, which means to select and implement the appropriate risk treatment options for the unacceptable risks. The risk treatment options can be categorized into four types: avoid, transfer, mitigate, or accept. Avoid means to eliminate the risk by removing the source or the target, such as discontinuing a service or replacing a system. Transfer means to shift the risk to a third party, such as an insurance company or a service provider. Mitigate means to reduce the risk by implementing controls, such as policies, procedures, or technologies. Accept means to acknowledge the risk and bear the consequences, such as by creating a contingency plan or a reserve fund. The risk treatment should be proportional and cost-effective, and documented in a risk treatment plan.

6 Monitor and review

The sixth and final step is to monitor and review the security risk assessment, which means to measure the performance and effectiveness of the risk treatment, and to update the risk assessment as the environment changes. The monitoring and review can be done by using indicators, metrics, or audits, and by collecting feedback, reports, or incidents. The monitoring and review should be regular and systematic, and documented in a risk report.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?